Travelers commits $5 million to crumbling foundations fund

Dec. 06--Travelers has committed $5 million to provide additional financial assistance to current and former policyholders with failing foundations.

The money will only be made available to homeowners who have also filed an insurance claim with Travelers and who are receiving funding from the Connecticut Foundations Solutions Indemnity Company.

"Since this problem emerged, we have been committed to finding a solution that will assist our customers dealing with this unfortunate and complex issue," said Michael Klein, executive vice president and president of personal insurance at Travelers.

Under the agreement, Travelers will administer the funds through the Travelers Benefit Program. Each eligible homeowner with a current Travelers insurance policy will receive a maximum of $25,000 toward repairs. Homeowners who have had Travelers insurance policies in the past will receive a maximum of $10,000.

The money will be supplemental to the funds provided by CFSIC.

Gov. Dannel P. Malloy and Attorney General George Jepsen announced Thursday that the state has entered into a memorandum of understanding with the Hartford based insurer.

The state has been pushing insurance companies to contribute funding to remediate the problem.

"Since we first attempted to establish a voluntary insurance assistance program, Travelers has been a willing partner in trying to devise workable solutions to this looming disaster," Jepsen said. "I commend Travelers for stepping up to the plate with this commitment and for agreeing to work with the state by creating this program. The epidemic of these deteriorating foundations is devastating to these homeowners, but it's also catastrophic to northeastern towns and the economy of the entire state."

Jepsen urged victims and members of the public to call their insurance providers and ask them to establish a similar fund.